Wells Wheels Up: Wetherbee's Airline Weekly

Research evidence excerpt

Wells Wheels Up: Wetherbee's Airline Weekly

Equity Research

Industry Update — June 4, 2026

Airlines

Southwest's Premium Push Beyond '26?

Our Call Christian Wetherbee

We spoke with Southwest on recent trends and the emerging longer term strategy. Equity Analyst | Wells Fargo Securities, LLC

Christian.Wetherbee@wellsfargo.com | 212-214-8053

Following premium initiatives recently launched, the company is contemplating the next

Robert H. Salmon, CFAleg of investment, which could help answer the durability of revenue initiatives.

Equity Analyst | Wells Fargo Securities, LLC

Robert.H.Salmon@wellsfargo.com | 212-214-5016

Replicating the Premium Flywheel - Southwest’s premium push may extend beyond Ryan Deveikis

assigned seating and leg room, with lounges representing the next logical step in the Associate Equity Analyst | Wells Fargo Securities, LLC

strategy (space leased in Hawaii). Lounges not only improve customer mix and loyalty, Ryan.Deveikis@wellsfargo.com | 212-214-8040

but also create the foundation for a co-branded premium credit card ecosystem similar Matthew Hortopan

to legacy peers'. That matters, as premium cards carry high-margin revenue streams and Associate Equity Analyst | Wells Fargo Securities, LLC

higher spend per card, reinforcing airline economics well beyond the ticket. Matthew.F.Hortopan@wellsfargo.com | 212-214-5009

Int'l Expansion Over Time - Longer term, Southwest’s gradual push into high-density int'l Recent Airline Research:

markets could increase revenue share by capturing more of its customers' airline spend.

Wells Wheels Up: Wetherbee's Airline WeeklyThis adds complexity with new planes and pilot training/certifications, and Southwest’s

- Week 21point-to-point network lacks a true gateway, though that could change over time. As the